WELLINGTON NEWS

Hokitika Guardian, 12 January 1926, Page 1

WELLINGTON NEWS

IF ENGLAND FAILS.

(Commercial Correspondent.) WELLINGTON, January 8. So many returned New Zealanders have allowed themselves to be interviewed respecting the conditions of British trade, and while some have taken a dismal view of the otulook others have been rather optimistic, so it is difficult to know which views to accept as being approximately correct. First of all, however, one has to be satisfied that these men who are thus ready to express their opinions have sufficient data to build upon, and if there is sufficient data whether they are conirpetent to express a sound opinion. A “ returned ” New Zealander is too often carried away by his own importance and thinks he knows much while lie really knows very little. But the condition of Britsh trade is of the utmost importance to us for if England fails wc fail. Tt is very pleasant to note that greater attention is being given to the economic side of trade within the Empire. Recently several letters have appeared in the Wellington papers dealing with this subject in its various aspects. Professor T. A. Hunter lias taken part in this correspondence and in his letter be says that it is not what wo say hut what we do that will determine the course of events. Tt is not so many years since most of our business men were shouting that they would never trade with Germany again—an obvious impossibility if the indemnity is to be paid. Professor Hunter thinks it would ho more to the point if we endeavour: (1) To direct our trade in a way that will bring us the greatest benefit by helping to sustain the people who buy the greater part of our available export. (2) To get hack to economic realities, instead of living in a make-believe world in which high prices for produce continue for ever. (3) To realise that however solicitous England may be for tbo welfare of the Dominions, she cannot go on indefinitely paying high prices for our products and lending us money at low rates while wo patronise thoso who arc her competitors, in the commercial struggle. (4) To understand that the economic aftermath of the war has not yet really affected us. All wars leave nations with their stock greatly watered by the depreciation of money. If a people do not unload the water voluntarily it will lie squeezed out when the time of trial comes—and this latter is a very painful process. In this the Professor is warning us that high prices for our exports cannot he maintained, and that it would 'ho better for us to face economic realities and realise that the purchasing power of the masses in Great Britain is not equal to the strain we are desirous to impose upon them. Tt is time also that some efforts wore made to Tiring about some reductions in tho cost of living in New Zealand, for if wo are forced to accept lower prices for our products the costs of production must lie reduced, and there ran he no such reduction if the rost of living remains high'.

WOW. TRADE PROSPECTS. The resumption of wool sales in New Zealand is an indication that general business has been resumed. The wool market recently has shown a tendency to remain firm. Tint this may only ho a flash in the pan ns often occurs in the markets. Tt lias been seen in the butter and cheese markets recently and will he witnessed nenin and a train.

The reviews by London wool brokers are not very encouraging although one can detect a strong effort to make the position appear as rosy as possible. All agree that there is a prospect of current prices being maintained, hut that will depend to a large extent upon how Germany and Franco stand in respect to finance. The present fashion in women’s wear is against the consumption of any large quantity of wool, and then artificial silk, cotton and wool substitutes arc powerful competitors. Tt hoiis itself down to this. Tho substitutes are introduced to nrovide the

masses with cheaper textiles, because the people canof pay the high prices demanded for wool. The lack of funds is the main reason for the drop in commodity values. People want the goods hut are unable to pay the price, consequently they are Taking the “just-as-frood” commodities. Tf wool can ho maintained at its present prices woolctrowers will have every reason to he gratified. hut he would he a rash man who would build upon a continuance of high prices.